Money and Finance: Crash Course Economics #11

  • 🎬 Video
  • ℹ️ Description
So, we've been putting off a kind of basic question here. What is money? What is currency? How are the two different. Well, not to give away too much, but money has a few basic functions. It acts as a store of value, a medium of exchange, and as a unit of account. Money isn't just bills and coins. It can be anything that meets these three criteria. In US prisons, apparently, pouches of Mackerel are currency. Yes, mackerel the fish. Paper and coins work as money because they're backed by the government, which is an advantage over mackerel. So, once you've got money, you need finance. We'll talk about borrowing, lending, interest, and stocks and bonds. Also, this episode features a giant zucchini, which Adriene grew in her garden. So that's cool.

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💬 Comments on the video

Dear Crash Course Economics team, I want to thank you for everything. A few weeks ago, I was panicking because my academic decathlon competition was coming up and I knew nothing of economics. What did I do? I watched all your videos and as a result I received a medal in economics!!! Thank you for everything. Continue the good work!!!

Author — Jacqueline Arteaga


*Main outtakes of this lesson*
1) Money serve three main purposes:
- Medium of exchange. It is generally accepted for payment for goods and services.
- Store of value. Money can be stored.
- Unit of account. Money is standartized metric that helps us measure value of things.
2) Financial system.
a. Lenders
b. Borrowers
c. Governments
d. _Capital_ - the machinery, tools and factories owned by a business and used in production.
e. _Financial system_ is a network of institutions, markets and contracts that brings lenders and borrowers together.
f. _Debt_ - if you get a loan from the bank, you are obligated to pay back the amount you borrowed plus the amount of interest.
g. _Equity_ - the difference between the value of the assets/ interest and the cost of liabilities of something owned.
h. _Financial instrument_ - a tradeable asset of any kind.
i. _Financial institution_ - an establishment that conducts financial transactions such as investments, loans and deposits.
j. Financial markets with instruments like stocks and bonds, allow borrowers to crowdsource the money they need to borrow. They raise their capital from lots of investors, and spread the risk around.

Author — Сергей Галиуллин


10 BITCOIN FOR A ZUCCHINI? That zucchini better be embedded with gold or something, damn.

Author — killerfrenchy


Does Patreon accept Zucchinis as payment?

Author — Ryan Tsui


I mean, she should have expected the zucchini jokes...

Author — Andre Vieira


Some notes if anyone needs em!

-Barter system is the alternative to money, but is highly inefficient
-Money serves as a medium to exchange, store of value, and a unit of account
-In the past we had the gold standard which connected each dollar to a value of gold
-Stock market is part of the Financial system which is composed of Lenders (corporations and households) and borrowers (households, businesses, governments)
-Financial system = a network of institutions, markets, and contracts that brings lenders and borrowers together
-3 ways this happens: banks, bonds, stock market
-Banks deal with debt, stocks deal with equity (the difference between the value of assets/ interests and the cost of the liabilities of something owned)
-Financial instrument = a tradeable asset of any kind
-Banks are Financial Institutions = an establishment that conducts financial transactions such as investments, loans, and deposits

Author — Stas Pakhomov


PS: that's actually a bad zucchini, when they get that big they are pig fodder

Author — Entropy3ko


Now I'm imagining somebody tryna steal 4 tons of limestone.

Author — Daniel John Kirby


Crash Course= A + I wish my college Professors went to Crash Course College =)

Author — Mr. Theodore Sr.


10 mins into Zucchini and chill and she gives you this look 0:22

Author — Marc Gebby Lauron


This is the best video in the series so far. Straightforward, easy to follow, and no political stalking horses.

Author — J. D. Montgomery


The giant pizza and zucchini is truly distractive 😂😂

Author — Zara Yap


i like how he just pulled out a fat stack of cash out of nowhere 4:04

Author — SavvyD_


You guys are so awesome!! One of the most boring subjects has changed into one of the most interesting ones! Thank you!!

Author — M H


This episode just got a lot more relevant because of that bitcoin bit.

Author — Lani Fagbemi


Wow, really random that Yap was brought up in Crash Course. I was born there. It's not something I see being brought up all that often lol.

Author — Jamum100


Thank you million times ! How dare you, I want to transfer to study Econ because of you, and I used to hate it !

Author — Spiky Blobject



Author — Sierra Rissell


OMG! Love this!
Thanks for actually speaking at a rate that I can follow. Other videos are edited and sliced together so tightly that it has NO pauses in between sentences for the information to sink in.

Author — bxcinderella


Please create an accounting playlist. Thank youuu

Author — Shaira Vista